The Short-Run Aggregate Supply Curve Is Upward-Sloping Because

question 20

Multiple Choice

The short-run aggregate supply curve is upward-sloping because:

• A)higher prices discourage the producers to expand output.
• B)higher price levels create incentives to expand output when resource prices remain constant.
• C)lower prices encourage the producers to expand output.
• D)higher price levels create an expectation among producers of still higher price levels.

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Definitions:

Sensory Stimuli

External or internal events or factors that can be perceived by the senses, leading to physiological or psychological responses.

Sensation

The process by which our sensory receptors and nervous system receive and represent stimulus energies from our environment.

Visible Spectrum

The narrow band of light waves that are visible to the human eye.

Light

Electromagnetic radiation within a certain portion of the electromagnetic spectrum, perceived by the human eye.